MONEY FLOW ACCELERATING: CENTRAL BANKS INCREASE BUYING TO $1T/QUARTER IN Q1 2017
KEY POINTS:
- Latest overnight note from Michael Hartnett of Bank of America, notes that central banks (ECB & BoJ) have bought $1 trillion of financial assets just in the first four months of 2017, which amounts to $3.6 trillion annualized, "the largest CB buying on record."
- Hartnett notes, the "Liquidity Supernova is the best explanation why global stocks & bonds both annualizing double-digit gains YTD despite Trump, Le Pen, China, macro..."
-- SOURCE 04-21-17 ZeroHedge - "Why "Nothing Matters": Central Banks Have Bought A Record $1 Trillion In Assets In 2017" --
A quick, if familiar, observation to start the day courtesy of Bank of America which in the latest overnight note from Michael Hartnett notes that central banks (ECB & BoJ) have bought $1 trillion of financial assets just in the first four months of 2017, which amounts to $3.6 trillion annualized, "the largest CB buying on record."
As Hartnett notes, the "Liquidity Supernova is the best explanation why global stocks & bonds both annualizing double-digit gains YTD despite Trump, Le Pen, China, macro..."
And for those who have still not seen it, here is the only chart that matters.
Finally, as a reminder also from Hartnett, any time the central bank punch bowl is taken away, an unpleasant "financial event" inevitably happens.
